INTERVIEW: KPI OceanConnect Remains Optimistic Despite 'Market in Flux'

CEO Dorthe Bendtsen sees a return to stronger profitability 'in the near future'. Image Credit: KPI OceanConnect

Global hybrid marine fuels firm KPI OceanConnect remains optimistic on the state of the bunker market this year despite a sharp drop in profit and pressure on margins.

The firm's pre-tax earnings sank by 55% to $9 million in 2024/25, the least since its formation in 2020. Revenues climbed by 1.8% on the year to $5.7 billion, while bunker volumes held steady at about 12 million mt.

CEO Dorthe Bendtsen puts the decline in profits down to global factors that are hitting the whole of the bunker industry, she said in an interview with Ship & Bunker.

Image Credit: Ship & Bunker

"This was driven by persistent geopolitical tensions, global trade disruptions and broader macroeconomic uncertainty," Bendtsen said.

"These external pressures have affected the entire sector, but we've remained focused on long-term value creation.

"Despite the margin pressure, we remain optimistic.

"Our financial strength, global scale, and commitment to innovation give us confidence in our ability to navigate volatility, support our clients, and return to stronger profitability in the near future."

Market Outlook

Bendtsen sees a level of uncertainty over how the market may move over the remainder of this year.

"The bunker market is in some flux at the moment," she said.

"In the past year, geopolitical tension and disruptions to trade have driven changing route patterns in the global shipping industry, which have helped drive fuel demand.

"At the same time, the energy transition is affecting shipowners' fuel strategies and will mean an increase in alternative fuel volumes.

"At KPI OceanConnect, we continue to develop how we work with our clients and customers to build partnerships that will support them through the energy transition."

Diversions away from the Red Sea remain one of the biggest factors affecting the market.

"Instability in the Red Sea has increased enquiries for bunkering at ports on the Cape route, and we have been responding to these as they have come," Bendtsen said.

"We have seen increased bunkering enquiries in Asia, and have respond to this at a corporate level with the opening of a new office in Japan.

"In the past year, we benefited from an expansion in availability of biofuels in our network, and can now provide these in over 150 locations across the world, from Asia to America."

Bunker Credit

Bendtsen sees increased complexity on the horizon for accessing the credit upon which bunker trading relies.

"Overall, credit availability for bunkering remains strong and the market has good liquidity," she said.

"That said, the broader, longer-term picture is complex.

"Financial institutions are still cautious and factors like geopolitical risk, emissions regulations (EU ETS) and projected future pricing on alternative fuels will continue to influence how credit is assessed.

"We're working closely with clients to help them navigate this environment offering reliable credit support and using our risk expertise to help manage their exposure effectively."

Bunker Holding Changes

Bunker Holding, KPI OceanConnect's parent company, has undergone some changes in the past year.

The firm announced a restructuring of its legal structures in May, and had gone through a management shake-up in November 2024, and more recently has made a variety of senior management appointments pointing to a more centralised structure across the group.

These changes are helping KPI OceanConnect to adapt to a rapidly-changing market, Bendtsen said.

"Supporting the best interests of our clients has always been our top priority, and that means embracing change when it helps us serve them better," she said.

"The bunkering sector is evolving rapidly - from digitalisation to decarbonisation - and we need to stay agile to meet those challenges head-on.

"As part of Bunker Holding Group, KPI OceanConnect is continuing to invest in improving our legal and trading structures.

"These investments are designed to strengthen our governance and compliance while enhancing our responsiveness to client needs.

"Ultimately, it's about simplifying how our business partners engage with us and ensuring we remain a reliable, forward-thinking partner in a complex and fast-moving industry."